- San Francisco leads with significant gains in hotel performance metrics, buoyed by major events.
- Houston experiences a sharp decline in occupancy and revenue, influenced by post-disaster recovery dynamics.
The U.S. hotel industry reported a downturn in key performance metrics for the week ending August 9, 2025, as per CoStar’s latest data. CoStar, a prominent provider of real estate analytics, highlighted a year-over-year decline in the sector’s overall performance.
During the week of August 3-9, 2025, the national hotel occupancy rate stood at 68.0%, marking a 1.0% decrease compared to the same period in 2024. The average daily rate (ADR) saw a slight dip of 0.6%, settling at $159.61, while revenue per available room (RevPAR) fell by 1.6% to $108.47.
San Francisco emerged as a standout performer among the top 25 markets, experiencing notable increases across all key metrics. The city’s occupancy surged by 12.8% to reach 81.5%, with ADR climbing 8.3% to $210.29 and RevPAR soaring by 22.2% to $171.38. This robust performance was largely driven by the influx of visitors attending the World Transplant Congress.
Conversely, Houston faced the most significant challenges, with occupancy plummeting by 27.5% to 55.3% and RevPAR dropping 34.6% to $61.38. These declines were attributed to the aftermath of Hurricane Beryl in 2024, which had previously spurred a temporary increase in demand due to displacement.
Overall, the U.S. hotel industry is navigating a complex landscape, with certain markets thriving due to event-driven demand while others struggle with lingering effects from past disruptions.
